3 challenges while managing employee performance and ways to fix them.

Companies are keen on exploring new ways to increase growth, yet only a few have leveraged their existing strategies. In such a scenario, it is imperative to better utilize a performance management system. However many of these systems are often detached from the corporate goals earmarked and hence lead to conflicting and incoherent behavior among employees in the context of the corporate goals. This results in a dip in performance.

Managing an unwieldy mix of targets, people, resources, activities, and still creating a cohesive system, can be a challenging task for managers.
The below are some challenges leaders need to watch out for in managing employee performance, backed by solutions.

1.Objectives and tasks being unclear


When work gets done in a high-pressure environment or if the situation calls for it, employees tend to wear different hats. They work on multiple tasks with different teams, which tend to cause a lot of overlap and leave employees feeling confused about what they are supposed to do. The lack of clarity on tasks among employees can lead to confusion and at the same time harm productivity.


It goes without saying that objectives need to be clearly defined, from the beginning. Management and HR professionals should prioritize making it clear to the employees- preferably through a performance management tool. They communicate objectives to the employees and make sure that they are rowing in the same direction as the organization.

KPIs and OKRs are common frameworks used to set goals.

  1. Core values are not defined


There are organizations that at times focus on the product or service more and less on creating their values until later. However, companies should soon realize that values are the core beliefs. Values define the company culture and play a huge role in employee strategy- from retaining to attracting talent.


A company needs to establish its core values so that it can help shape the team’s behavior and take decisions that best align with the values. Earlier the organizations create their foundation of values, the sooner it can be relayed to employees and they can incorporate it into their performance.

  1. No clarity regarding career development and progressions strategies


The two major things that lead to employee retention are career development and progression. Once an employee is on board the tendency to not focus on continuing to develop her /his skills is a common one. This can create disengagement among employees and lead to suboptimal performance and attrition.


From the very beginning, define the compensation and development strategies. Once they are defined, management must make sure that they are clearly relayed to the employees. For compensation, it is vital to remember that an employee’s salary will be contingent on their previous performance, company’s stage, and role. Coming up with a clear strategy structure is crucial so that the organization can avoid problems as they start to grow.

Wrap up

Setting clear objectives, showcasing and integrating company value into the performance management system, and building a feedback culture is the bedrock of performance management

entomo is a modern performance management software built for the ‘future of work.’ Powering
30mn+ users, we provide a platform to the ‘enterprises of tomorrow’ and help them drive performance by aligning goals and nudging actionable insights. In addition to that, manage distributed & remote teams and build a tomorrow-ready workforce. To know more, visit https://entomo.co/request-demo/

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